Home Entrance Exam Prep D2C IGNITE The Spark to your dreams season 2: Career prospects of FMCG sector

D2C IGNITE The Spark to your dreams season 2: Career prospects of FMCG sector

D2C Admin

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D2C IGNITE The Spark to your dreams season 2: Career prospects of FMCG sector

0 min read

Many are thrown for a loop and others are left scratching their heads when it comes to figuring out the best profile from an industry standpoint. After burning the candles at both ends, MBA aspirants often find themselves in utter chaos while exploring different options in the Marketing and Sales profile. So, to help you blow away the cobwebs, Dare2Compete IGNITE - The Spark to Your Dreams, Season 2 is here to put all your juggling thoughts to rest. Let’s dig in to see what industry leaders have to say on this. Here is a quick recap of the session and their view on the career prospects of the FMCG sector.

There is no surprise in the fact that FMCG is the 4th largest sector in the Indian economy. It has been a major contributor to the GDP of the country and with the governments’ allowance of 100% FDI in food processing and single-brand retail and 51% in multi-brand retail, this sector is further ballooning. Along with factors like e-commerce, escalation of internet connectivity, and digital media the rise in rural consumption is also driving the FMCG and FMCD market.

For deciphering the intricate facts and figures of this sector, we have distinguished figures of the industry - Abhishek Dhawan, Assistant Branch Manager - CFP Delhi, ITC Limited (alumni of MDI); Paritosh Pant, Group Brand Manager at Asian Paints (alumni of XLRI Jamshedpur); Vaibhav Phadtare, Brand Manager at RB (alumni of SPJIMR Mumbai); Sugandha Gupta, Senior Brand Manager, Juices Portfolio, PepsiCo (alumni of MDI) to walk you through the exciting bylanes of the Sales and Marketing in an FMCG company.

By the end of this article, you will be able to get a comprehensive knowledge of the career prospects of FMCG and FMCD sector along with fair insights of:

Which profiles are best for you?
How should you explore different options in the Marketing and Sales profile in this sector?
What key attributes or skill sets do the companies look for in candidates at the time of hiring?
What are the skill sets that are now coming into focus post-COVID-19?
What is the career growth journey/trajectory of an ideal candidate in FMCG/FMCD firms?
What are the key stints that any MT needs to go through and why?

A preface to FMCG, FMCD and its characteristics

There is a slight difference between ‘goods’ and ‘durables’ when it comes to FMCG vs FMCD. FMCG deals with consumer goods that have a shorter shelf life or are perishable in nature. They have high demand, low cost and are consumed rapidly. FMCD, on the other hand, has utility for a longer period of time and has a shelf life of 3 or more years.

Majorly the products fall distinguishably into either of the categories, for instance, PepsiCo is purely an FMCG firm, it has fast-moving products and yields a high turnover for a product within a short span of time, which usually range from 5 to 30 days. Everyday products like toothpaste, bread, confectionery, soft drinks fall into the fast-moving category. Whether it is hygiene products of RB, or food, stationary or personal care products of ITC, all clearly caters to the FMCG sector. But there can be a slightly different take on this, companies like Asian Paints fall in a space between the FMCG and FMCD sector. It cannot be gainsaid, that their products are used once every 2-3 year but their products do not vanish as soon as they are consumed!

Do you know?

It cannot be overstated that brands like ITC, Reckitt Benckiser, Asian Paints, and PepsiCo are giants in the FMCG industry. But do you know the lesser-known facts about them? Do you know that the bottled beverages in Starbucks are actually developed and sold by PepsiCo, for the past 20 years? So, get ready to dive into some fun facts about these conglomerates:

ITC works both ways - backward and forward integration. Their major source of raw materials is primarily from India for instance, they bank on 4 billion farmers for sourcing the pulp of B Natural juices. However, for meeting the quality of products they import raw materials for example, for Fabelle chocolates, the raw materials are sourced from Madagascar. They believe in being vocal for local and support around 6 billion livelihoods from their daily operations!

PepsiCo is the second-largest food and beverage company in the world. They have a wide portfolio which is divided into 3 categories - Fun for you (Pepsi, Lays, Kurkure, etc), Better for you (Pepsi Diet, Pepsi Black, etc) and Good for you (Quaker Oats, Tropicana juices, etc). Since its establishment in India in 1989, the consumers have grown-up on its products in the last 30 years. The fun fact is that Kurkure is a homegrown brand that is now globally cherished by consumers. Across the globe, consumers enjoy their products a billion times a day!

Asian Paints has been in the industry since the late 1960s and is not just another label for paints. But there are a lot of layers the company has added to its portfolio apart from paints. They have dabbled with waterproofings, home services, their own range of wallpapers, painting tools, and sanitizers - which is the newest kid on the block! It is now heading to becoming a Home Decor company and not just as a paint-only-company.

Reckitt Benckiser, an anglo-dutch company, whose biggest brand in India is Dettol and Lysol in the US. RB is divided into two divisions, Health (Move, Itch Guard, etc) and Hygiene (Lysonl. Harpic, Vanish, etc). Holding a lion's share in the hygiene and health department of the FMCG industry, RB has done a number of acquisitions and mergers. The latest ones are with Mead Johnson Nutrition and Paras Pharmaceuticals to further expand its portfolio. A commendable act by RB during these bleak times is the donation to help Wuhan recover and to the Delhi government for disinfecting the surfaces with the help of their products.

The impact of COVID on FMCG industry

The outbreak of COVID clearly disrupted the supply chain of the majority of companies. According to the distribution point of view, the traditional trade and e-commerce channels were later relieved of the repercussions of the pandemic and resumed their functions. But modern trade underwent a major hit. The outlets drastically saw a decline in footfall due to the lockdown.

Consumer behaviour also saw a refinement, with a shift to branded products. For instance, Aashirwaad from ITC saw an upsurge from its usual demand. This can be very well contributed to the factor of raising awareness among the people. There is a change of perception, people are now more conscious about hygiene. All thanks to the Government initiatives and TV campaigns.

Another impact of the pandemic on the FMCG sector is an increase in the demand for snacks! The in-home munching has gone up and so is the demand for packaged foods, chips, beverages, and bottled drinks. A fact of paramount importance is that brands have to be contextual, relevant, and should not be opportunistic during this time. What can be a better example than one of the campaigns of PepsiCo - Swag Se Salaam Namaste, which was a great way to deliver the message of maintaining social distancing even while greeting others!

Sales, Marketing, Branding & Operations how they are different yet linked with a common thread

Every FMCG company consists of a more or less similar profile. It is broadly branched into Sales, Branding, Marketing, Supply Chain, and Operations.

Sales are majorly associated with the distribution of products, go-to-market strategies, and channel strategies.
For branding and marketing, the person is the custodian of the brand and looks after its pricing, packaging, etc.
Lastly, the Operations and Supply chain profile deal with logistics, production, commercialization, vendor management, etc. These are closely knit and perform symbolically.

All profiles need to work together like a well-oiled machine! For a majority of companies like ITC, RB, and PepsiCo an MT needs to go through the sales stint first, followed by the marketing profile. However, in FMCG companies like Asian Paints, Sales and Marketing are at the same pedestal. Also, one can leverage the flexibility of switching from one function or profile to another at any level in an FMCG firm, provided the person knows the nuts and bolts of that particular business.

The whole caboodle of skill sets that are desirable

Students often ponder, whether they have the skills needed for working in their dream company or not? Well, to your surprise, these companies do not ask or seek for unattainable skills and knowledge in the candidates. Talking about the career prospects of the FMCG sector, it has a mine of opportunities. You just need to have basic hygiene requirements, for instance, PepsiCo looks for cultural fit, strong value system, and willingness to learn. They focus a lot on the perspective of Sales, so as an MT, the company values people who act like owners. If you have an open mind, you are a perfect fit for any function.

Similarly, for ITC, CV credentials are of course important but they want people who are ready for change and have the capability of taking ownership. Talking about, Asian Paints they look for people who can process data, and have a lot of field understanding apart from the cultural fit.

Even post-COVID, these essential skill sets are never going to be undermined by the recruiters.

Things that should NOT be missed ever!

Keeping pace in a turbo-charged world, one can easily get derailed from the track if there is a lack of right guidance. The panel took extra care into debunking myths and address important questions that riddle almost every aspirant's mind. To endow you with a bigger picture of the career prospects of the FMCG sector, we have rounded up some important points discussed, that should not be overlooked.

If you are looking for an internship in an FMCG company, Sale is an important part of the stint. Make sure your resume reflects your ability to manage projects, take initiatives, perform team building activities
Do not let the factor of work-experience deter you from giving it your best shot. It doesn't matter whether you are a fresher or an experience holder. Be a go-getter and tell the recruiters how your skills can contribute to their company’s growth.
Diversity on your resume is important. The clubs, projects, experiences, social work, or anything that makes you stand out of the pack should be mentioned in your resume.
In some FMCG companies like Asian Paints, if you have a good ability to assess raw data, you will definitely have an upper hand.
Good online courses should never be skipped. Any course that compliments your interest and subjects should be taken seriously.
Online courses on networking, AI or other cutting-edge technologies that are not in your curriculum can also be pursued if you have an interest, but do not be a blind sheep and do what others are doing.
Last but not the least, if you want to get the most out of the career prospects of the FMCG sector, you can level up your sales and marketing skills. Be open to experimenting and taking risks, going to challenging geographies of the country, have a willingness to learn, feel passionate about the product, take ownership, build consumer understanding, have an entrepreneurial mindset, and sharpen your data analysing skills.

IGNITE - The Spark to your Dreams, was realised through a series of 6 information-packed sessions which saw recruiters and leaders from Reliance, ABG, TAS, Flipkart, Mondelez International, BCG, McKinsey, Bain & Co. and more. In case you missed any session, here are links to catch up on them: